Saturday, March 1, 2008

Gold Continues to Soar

From the Financial Times (UK Edition), March 1, 2008:

The soaring cost of gold and platinum is causing pandemonium in the UK's jewellery market as retailers and private owners rush to reappraise the value of necklaces, brooches and rings.

Jewellers in London's Hatton Garden - the capital's jewellery quarter - are raising the price of wedding bands on a weekly basis, with less-expensive palladium rings now coming into vogue. And insurers are urging clients to get
another assessment of the value of their jewellery collections in response to the rapid rise in the price of precious metals, sparked by investors seeking refuge from volatile stocks.

"The price of platinum has been going up so fast, we're quoting people prices for platinum wedding bands on a Saturday and saying we can't guarantee the same price on Monday.

Scores of jewellers and private investors have also had expensive articles reappraised to be sure they are not caught out in case of loss or theft.

The price of gold hit a record $975.90 yesterday, ending European trading at $970.40 a troy ounce, while platinum hit a record $2,158 a troy ounce last week.

It is an excellent idea to have your better and heavier gold jewelry reappraised for insurance purposes. You'll find that over the last three years prices have at least doubled. In the case of some Swiss Made gold watches, the price for a replacement watch has tripled.

Have your diamond jewelry reappraised, too. Diamonds continue to increase in price, although not as rapidly as gold. Still, the effect on replacement costs can be staggering.

Bargain hunters should shop local jewelry and on the Internet for dealers who have been slow to adjust prices. There are many items on-line at prices well below the new dealer cost.

There has literally never been a better time to go treasure hunting.